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  Jane Fox   9/26/200,  4:04:38 PM
Linda - I concur with the reader - congrats on a great week of trading.

 
 
  Linda Piazza   9/26/200,  4:03:05 PM
Reader Question: Congratulations on a very good week of trading. I don't believe there are any OEX futures to trade, so my question is what do you trade for the OEX? Are you using OEX options? If so, what strike price and expiration month?

Response: Thanks. This week had more of a directional bias than some weeks have had lately. Yes, I trade OEX options, although on occasion if another index is noticeably weaker or stronger than the OEX, I might trade that index's options. For example, if the indices are weak on a particular day and the Dow is the weakest of the three while the OEX is holding up relatively well, I might trade DJX options instead of OEX options.

The question of the strike and expiration month is one that doesn't have a pat answer. It depends. If I think the OEX might make only a small move and I want to capture as much of that move as possible, intending to get out quickly on a profit stop before the turn, I usually try to get an in-the-month option so that the delta is high and it moves pretty much in step with the OEX. If I plan on staying in for a while, in what I anticipate may be a big movement, I might get an ATM or slightly OTM option. Since I'm usually staying in trades two weeks or less, I usually trade with current month options the first two weeks of the cycle and then switch to next-month options the last couple of weeks. I normally have an ironclad rule against trading current-month options the last week of the opex cycle, but last opex cycle, I decided what I would be willing to risk on being stopped out of a play and bought the options for that price. It worked well that week, but I don't recommend that. Those options are cheap for a reason. I'm only mentioning what I did for the sake of disclosure

Of course, the VIX (now VXO) has been low lately, so I haven't even had to worry about how that will affect option prices. If the VIX is high, and I think a prolonged bounce is imminent, then I've got to somehow factor that into the mix, as a call is going to cheapen in price even if the OEX rises, if the VIX is also diving at the same time. That OTM portion of the premium is going to reduce quickly.

 
 
  Jeff Bailey   9/26/200,  3:52:40 PM
Patience ....

1) The capacity, quality, or fact of being patient.

2) Chiefly British The game solitaire

3) Chiefly Trading SSYS $43.27 -13.27% ends up falling to original bearish target of $43.30 and Jeff made wrong decision to turn and go long.

 
 
  Linda Piazza   9/26/200,  3:46:21 PM
Swing Trade Recap- OEX/SPX/DJX/DIA/SPY
Since we're not going to be placing any new Swing trades this afternoon, here's the weekly recap a bit early:
9/22: Entered a bearish OEX trade at OEX 514.50.
2/22: Profit stop at OEX 512.50.
Result for the day: +2 OEX points our favor.
9/24: Entered a bearish OEX trade at OEX 510.90.
2/24: Profit stop at OEX 506.17.
Result for the day: +4.73 OEX points our favor.
9/25: Entered a bearish OEX trade at OEX 507.17.
9/25: Profit stop at OEX 502.71.
Result for the day: +4.46 OEX points in our favor.
Results for the week: +11.19 OEX points our favor.

 
 
  Linda Piazza   9/26/200,  3:40:27 PM
The other day, a reader of Jonathan's and I both commented on the Chinese Internet-related stocks SOHU, SINA, and NTES. They've made bubble-type gains over the last year. They're getting clocked today.

 
 
  Jane Fox   9/26/200,  3:40:25 PM
I'm with you Linda.

 
 
  Linda Piazza   9/26/200,  3:36:13 PM
Is it only 3:35 ET? Does anyone else feel as if this has been the longest trading day ever experienced? They should just turn off the lights at the exchanges.

 
 
  Linda Piazza   9/26/200,  3:17:09 PM
The OEX ticked just below the downside #2 on Jeff's 5MRT a few minutes ago, by less than 20 cents, and jumped up again as if scalded. Someone trapping the bears? Still, although the OEX has generally traded within a rectangular 3-point range today, we still have a slight pattern of lower highs and lower lows.

 
 
  Jeff Bailey   9/26/200,  3:11:59 PM
Echoing Jim's 15:10:49 ... never have we worked so hard for so little.

 
 
  Jeff Bailey   9/26/200,  3:05:40 PM
SSYS $44.35 -11% ... There goes intra-day support. Stopped. See you later SSYS, but no more today.

Could well be a signal that we see lower trade in indices to the close. Not that SSYS is key stock, but not enough buying at the lows to hold support.

 
 
  Jeff Bailey   9/26/200,  3:02:18 PM
Bond market set to close with gains. 10-year YIELD ($TNX.X) fell 7.9 bp to 4.023%.

Benchmarking the INDU = 9,322, SPX = 997.8, OEX = 500.31, NDX = 1,314, QQQ = $32.67, RUT.X = 488.05

 
 
  Linda Piazza   9/26/200,  3:00:16 PM
There goes the possibility of an inverse H&S, but not our dread that the OEX will continue to tread water within this three-point consolidation zone.

 
 
  Jeff Bailey   9/26/200,  2:54:28 PM
German DAX (DAX) 3,304.78 fell 51.07 points by the close. Link

Looks near-term oversold, but each day gets a little more interesting.

 
 
  Jeff Bailey   9/26/200,  2:46:10 PM
QQQ intra-day chart. Link

 
 
  Linda Piazza   9/26/200,  2:24:30 PM
The inverse H&S possibility is still alive on the OEX, but it's now far too late on a Friday afternoon for me to consider giving a signal, official or unofficial, on the OEX. In addition to needing room to run so that we can recoup the costs of our OEX bid/ask spreads, we also need to have time for the play to run. As I mentioned earlier today, I'd still like to see the OEX rise to test key levels by today's close. The alternative is that it sink to test key levels, an equally helpful activity. I'm afraid, however, that what will happen is that the OEX will meander between the two right into the close.

 
 
  Jeff Bailey   9/26/200,  2:21:59 PM
SSYS $46.07 -7.6% .... intra-day trade review. Link

 
 
  Jeff Bailey   9/26/200,  2:01:01 PM
Day Trade Long .... SSYS $45.25 -9.26% here, stop $44.74, target $47.68.

I hope this makes sense on a day trader basis, with the observations made during the session so far. "If you can't break'em, then join'em"

 
 
  Jeff Bailey   9/26/200,  1:59:29 PM
QQQ I just noticed same type of inverse h/s pattern on intra-day in QQQ, which is probably no different than Linda's 13:44:47 observation. If the bulls are going to get a rally going, this would be the spot they'd better start at.

 
 
  Linda Piazza   9/26/200,  1:59:22 PM
We'll soon be getting an answer to the H&S question I posed in my 13:44 post. Either the OEX is going to have to steady off here and rise if it is going to form a potential inverse H&S on the five-minute chart, or else it's going to fall through that level and negate the potential formation.

 
 
  Jeff Bailey   9/26/200,  1:52:41 PM
SSYS $45.54 -8.6% ... I see SSYS traded $46.10 while I was writing 01:00 Update. Would look to close out any bearish position right here back at $44.96 support.

 
 
  Jeff Bailey   9/26/200,  1:47:01 PM
01:00 Update posted at this Link

 
 
  Linda Piazza   9/26/200,  1:44:47 PM
I'm noticing that the second bottom of the potential double-bottom on the OEX five-minute chart is somewhat wider than the first, and actually reached a slight bit deeper. Whenever I start seeing that shape, I start wondering about the potential for a right shoulder to form, to match the possible left shoulder, in this case forming an inverse H&S formation. I'm wondering if the OEX might not drop back toward 500.50 again and then round up.

 
 
  Linda Piazza   9/26/200,  1:35:48 PM
Swing Trade Signals
I think an OEX trade over 503.50 has a decent chance of getting to 506 and maybe 510. Both 30-minute and 60-minute MACD histogram levels are now slightly above signal. I'm considering an afternoon long play, but it would be a risky one, perhaps too risky, and I may just make it an unofficial play that I follow.

 
 
  Linda Piazza   9/26/200,  1:22:50 PM
If the OEX climbs above 503.20, it will have confirmed a near double-bottom on the five-minute chart (had a candle spike below the double-bottom). The upside target would be roughly 506, which interestingly enough is upside I halfway expected today, based on the declining 30-minute 21-pma and the descending trendline (from the summer) on the daily chart.

 
 
  Jeff Bailey   9/26/200,  12:56:44 PM
QQQ $32.88 +0.24% .... just off morning lows of $32.62. Main technical I see that came into play as support was the extention of our cloned downward trend.

 
 
  Linda Piazza   9/26/200,  12:51:01 PM
I actually would like to see a bounce today up to OEX 509-511, just under the 60-minute 100 and 130-pma's, as that would give us a good setup for Monday morning. We would be able to go short on a rollover beneath those averages and long on a move above them.

 
 
  Jeff Bailey   9/26/200,  12:48:56 PM
AMEX Gold Bugs Index ($HUI.X) 190.28 -5.41% ... getting whipped again today, but now look for firming with support at 185.

 
 
  Jeff Bailey   9/26/200,  12:39:56 PM
Small cap trader trick .... Not suggesting anyone do this, but one trick a DAY TRADER might be found doing from time to time is this....

Imagine you're short a stock at $46.00, and stock is at some type of intra-day support of $45.00 and you feel its just pennies away from breaking that support, which could lead to further decline to your target.

One trick a day trader will do, is show some size above current trade, say $45.75, and try and give the impression you're a seller on that rally. If the stock truly has a sell bias, market makers might be fooled into thinking they still face some stock, and back off their bids a bit, and this could then influence selling needed to achieve the bearish target desired.

The "trick" is not not get filled on the "size" at $45.75 and get your head handed to you.

 
 
  Linda Piazza   9/26/200,  12:36:50 PM
Volume patterns grow much more bearish as the day progresses.

 
 
  Linda Piazza   9/26/200,  12:25:33 PM
Here's a chart of the VXO sent by reader T.G., denoting how the VXO measures in relationship to its 200-ema: Link This is yet another indication that the VXO, and therefore the markets, appear to be at an inflection point.

 
 
  Jeff Bailey   9/26/200,  12:23:07 PM
SSYS $45.19 -9.46% .... just can't get the break lower of $44.96 at this point. Would LOWER STOP to break even. A trader that may have shorted 200 shares or more, might also look to cover 1/2 of position for gain, then let rest ride, stop breakeven, target $43.30.

 
 
  Linda Piazza   9/26/200,  12:18:43 PM
There's a new low of the day for the OEX, too. We did have a breakdown of the likely bear flag and now a confirmation by a new low. It now looks as if OEX 503-503.50 would likely hold as resistance, but I continue to be wary about a short entry. I may be forced to consider one, however, but I'm watching this little bounce to see how far it carries the OEX. Disclosure: Due to a family illness that may require travel, I will not be entering this play. Stops or no stops, I don't want to risk being caught in a play that I might not be able to personally watch.

 
 
  Jeff Bailey   9/26/200,  12:12:09 PM
SPX 996.80 -0.64% ... making session low here.

RUT.X 488.46 -1.33% almost there (488.32), SSYS $45.12 -9.52% almost there ($44.82)

 
 
  Jeff Bailey   9/26/200,  12:07:23 PM
SSYS/RUT.X comparison charts. Observations... Link

 
 
  Jeff Bailey   9/26/200,  11:58:26 AM
I like Jim's strategy change that he discussed in last night's market monitor regarding the legging in on trades, instead of going full blow on the original entry and the legging out.

This allows for smaller exposure at first, then when he's RIGHT and senses the end-goal is achievable, gets more aggressive and legs in to the trade further as conviction for the trade begins to build.

 
 
  Jeff Bailey   9/26/200,  11:53:33 AM
SSYS intra-day observation. Doesn't it look just like the Russell-2000 Index (RUT.X) on intra-day basis?

A trader making that observation begins to think.... "If RUT.X breaks to new intra-day low, I should look for SSYS to do the same." Thought then becomes...

"By golly, SSYS did find support at $44.96, just like I thought some market maker support would be. However, I don't know if he has some bullish order to fill at this $46.00 area or not. So the test becomes... if RUT.X goes below today's lows of 489.61, then I would want to see SSYS do the same. If not, the SSYS decline might be done for the day, and time to look to close out."

 
 
  Linda Piazza   9/26/200,  11:51:48 AM
Jane, I was just about to make the same comment with reference to the OEX (see Jane's 11:42 Futures Monitor post). The OEX also has remained within the neutral zone Jeff projects for his 5MRT.

While we're spouting acronyms, Jonathan's SWUP (sideways up) acronym describes my best-guess scenario now for the OEX today. I'd thought the OEX might rise to test the 30-minute 21-dma today, an average that kept capping its movements yesterday, but instead the OEX trades sideways while the average descends toward it. That average now lies at 505.11. We might have to wait until Monday to see what happens when price meets that average.

 
 
  Jeff Bailey   9/26/200,  11:43:20 AM
Reply to Jonathan's 11:11:26 ... agree with you on OTCBB Jonathan, but my comments also toward stocks like SSYS, yesterday's ABMD day trade profile, and other NASDAQ listed small and mid-caps, where we don't see 100,000 share volume rates on a minute-to-minute basis.

It is for a DAY TRADER that you are playing cards against the market maker. Don't show your hand if you don't have to.

They (market makers) aren't dumb. If they see you short 200 shares (or whatever trade size you are running) and immediately see 200 shares show up $1.00 lower, they know what is going on.

Same goes for DAY TRADER stops. If you short 200 at $50, and then place your stop loss order at $50.50, there's a good chance you should get filled for the 50-cent loss minutes later if the stock doesn't trade a lot of volume like a CSCO, INTC, MMM, etc.

 
 
  Jeff Bailey   9/26/200,  11:35:43 AM
11:00 Update posted at this Link

 
 
  Linda Piazza   9/26/200,  11:33:44 AM
I was feeling pretty dumb this morning, sure my confusion was going to cause subscribers to miss out on a great trade, but I'm feeling smarter and smarter as the day goes by. What are volume patterns showing? They're showing a downward bias, with adv:dec ratios at 12:17 for the NYSE and 10:19 for the Nasdaq. As of a few minutes ago, total volume was 462 million for the NYSE and 693 million for the Nasdaq. Down volume led up volume on both exchanges. New highs measured only 63 with new lows at 17.

 
 
  Linda Piazza   9/26/200,  11:16:19 AM
I, too, agree with Jonathan's comment about staying away from the thinly traded issues. As I mentioned today, I monitor some of the penny stocks as a sort of sentiment measurement, but I've never bought any of the stocks I mentioned in my 10:33 post for the reason I mentioned there--they're so thinly traded. Just as I watch the Russell 2000 to see how small caps are doing, I extend that to watch even more speculative stocks.

 
 
  Linda Piazza   9/26/200,  11:10:34 AM
The OEX appears to be gathering steam for an assault at 505.50-506.50. The 30-minute 21-pma, an average that kept capping the OEX's upward movements yesterday, lies at 505.47, a level that was also historical support through much of yesterday afternoon. More importantly, this zone represents historical S/R on the daily chart, too, and one version of the summer's descending trendline also crosses near that level. I wouldn't be surprised to see this level tested today, as I mentioned earlier. I wouldn't even be surprised to see 508 tested today. Daily RSI tries to cup upward again. I'm just less sure of 509.50, 511, 513.50, and 516.

 
 
  Jeff Bailey   9/26/200,  11:00:04 AM
Small-cap short-term trader tip If you are a short-term trader in small to mid-caps, and are looking to close out a trade at a target, try NOT to stick your order out at a LEVEL. Try NOT to give the market maker any hint that you are looking to BUY or SELL a particular level. Sometimes, they will sit the BID/OFFER just ahead of your order and try to get YOU TO PAY UP for what they KNOW you WANT.

 
 
  Jeff Bailey   9/26/200,  10:54:57 AM
Stratasys (SSYS) intra-day chart on 5-minute interval. Link

See 10:11:36 profile.

 
 
  Linda Piazza   9/26/200,  10:52:58 AM
Maybe then, Jim (see Jim's 10:49 Futures Monitor post), I can turn around my statement that the market confused me today and I couldn't see a clear direction, and say I was showing great insight today in determining that there wasn't a clear direction? (Grin.) It wasn't that. I studied and studied charts last night, and I just could not build a scenario in which I had any faith.

 
 
  Linda Piazza   9/26/200,  10:42:54 AM
Jim and Jonathan just mentioned the VXO. Reader T.G. notes that the last VXO (old VIX) closes above 24 were the August 5 close at 24.11 and the May 1 close at 24.50. The OEX climbed and the VXO sank again after May 1 and after August 5. As T.G. points out, this could be a turning point. Is the VXO establishing a new range in which 24.50 is the new high (meaning the OEX has reached a relative low and will climb) or is the VXO about to break out again and re-establish that old 20-30 range (in which case the OEX would probably continue to tank)?

 
 
  Jeff Bailey   9/26/200,  10:38:23 AM
5-year YIELD ($FVX.X) lower by 4.9 bp at 2.982%. Had alert set on downside below 3.0%.

Just wanted to be alert to see if there is any market response.

I will note that right when I got this alert, I did get a buy program premium alert seconds later. SPX was approx. 1,002.50

 
 
  Linda Piazza   9/26/200,  10:33:22 AM
I've been watching penny stocks for a while, trying to see what's happening in the underbelly of the market. I figure that if the bullish sentiment is strong, retail traders are going to flock to these stocks. If bullish sentiment flees, they'll flee these stocks quickly, too, and probably before they do anything else. Here are two that aren't doing so badly today: Link Link Others have pulled back, but some just to next support: EPMD to its 10-dma, THIN to its $1.00 breakout zone, just above the 30-dma that has been supporting its movements, MTIC to $1.50 and moving up again today to challenge $1.80 again. Note: I'm not suggesting a long play in these stocks, as their average daily volumes are so low that their trading patterns might be unpredictable, nor do I currently own shares in these stocks. Right now, at least, I'm just monitoring them for the stated purpose. What they're showing me just now is that bullish fervor hasn't been eliminated altogether just yet.

 
 
  Jeff Bailey   9/26/200,  10:21:32 AM
Dow Indu (INDU) 9,340 -0.04% .... just inched green but back lower. Have seen one sell program premium alert at the open, but 5 buy program premium alerts. Traders look rather busy this morning.

 
 
  Linda Piazza   9/26/200,  10:20:37 AM
The OEX is currently at its daily lower Bollinger band, or actually is bouncing a bit from that BB after having slightly pierced it. It also touched the 500 support, getting suspiciously close at 500.01 before bouncing. Tell me that's accidental. As I mentioned in my early post this morning, my thought was that the OEX would probably find support, probably not too far below its then-current level, and then retest broken support. However, I just haven't found that possible scenario compelling enough to put readers into a countertrend trade at this level, especially when I suspect that retest may find former-support-turned-resistance too strong at 505-506. That's not that far overhead. There's a possibility that the OEX could come all the way up to test the 60-minute 130-pma, but that seems less likely today.

 
 
  Jeff Bailey   9/26/200,  10:11:36 AM
Day Trade Short .... Stratasys (SSYS) $46.10, stop $47.72, target $43.30.

 
 
  Linda Piazza   9/26/200,  10:09:54 AM
The pattern on the OEX five-minute chart appears to be a possible "b" distribution pattern, close to being broken to the downside now. If that's forming about midway down a decline, as they often do, that suggests much more downside for the OEX. With all that support below, I'm not yet convinced that we're going to see the predicted six more points downside, however, but then I headed into the day not convinced of much of anything. Volume patterns, the OEX's behavior near the 50% retracement of its first five-minute candle, and 30-minute indicators certainly all cooperate with the more-downside theory. I'm just having an off day when I'm not convinced of either much upside or much downside.

 
 
  Jeff Bailey   9/26/200,  10:09:22 AM
Russell-2000 Index (RUT.X) 488.88 -1.24% .... extending yesterday's slide. Should keep bulls from getting too aggressive right now, as I think this still hints of some end-of-quarter sell adjustment and asset allocation.

 
 
  Jeff Bailey   9/26/200,  10:02:42 AM
SPX intra-day chart on 5-minute intervals. Set up chart per last night's Index Trader Wrap. Link

 
 
  Linda Piazza   9/26/200,  9:57:01 AM
I wouldn't be surprised to see an OEX retest of 505-506, but I'm not convinced enough of that to suggest even an unofficial trade.

 
 
  Linda Piazza   9/26/200,  9:50:17 AM
Obviously, the OEX has not been able to penetrate the 50% retracement of the first five-minute range, much less sustain levels about that 502.11 level, leading us to conclude that we're seeing early weakness. We could see a further retreat down to 500 support or even to support just below that. The 30-minute indicators remain full-out bearish, although there may be potential bullish divergence setting up as they're not reaching lower lows while price does. Without an initial bounce to provide an entry and with support layered so closely underneath, I didn't see a good bearish entry, and I'm not ready to step in front of this with a bullish one yet, either. We obviously should have kept our Swing Trade bearish position open overnight, but again the risks seemed to outweigh the possible reward.

 
 
  Jeff Bailey   9/26/200,  9:44:40 AM
Microsoft (MSFT) $28.32 +0.28% Link .... Prudential initiating coverage with an "overweight" rating and targeting $35. Pru saying the ongoing industry-wide PC refresh cycle combined with MSFT's new product cycle has the potential to create a "perfect storm of favorable winds," and expects MSFT to see a declining EPS drag from emerging unprofitable divisions in fiscal year 2003 to fiscal year 2006.

 
 
  Linda Piazza   9/26/200,  9:37:55 AM
The 50% retracement of the first five-minute OEX range lies at 502.11, and we can begin watching that level for signs of earliest strength or weakness. Because this candle did span a larger-than-normal distance, this level could be significant to watch. That also means those of you interested in the process can begin watching Jeff's 5MRT levels, too, for viable daytrades. I'll try to follow them, too, if time allows.

 
 
  Jeff Bailey   9/26/200,  9:20:11 AM
09:00 Update posted at this Link

 
 
  Linda Piazza   9/26/200,  8:50:44 AM
Swing Trade Signals
What's next? Here's a 60-minute view of the manner in which the OEX ended trading yesterday: Link This chart demonstrates a bearish 60-minute candle and bearish CCI and MACD configurations. The blue envelope slants down with the current prices below the blue 100-pma and green 130-pma.

Here's a similar-appearing 60-minute chart from December 31, 2002: Link Matters look pretty dire on both charts. Note how similar the configurations are in the candle patterns, MACD, and CCI, and the envelope's position relative to the blue 100-pma and green 130-pma, and then look at what happened in the next days after that December chart: Link

Obviously, I'm not predicting that the OEX will climb 30 points in the next few days or suggesting that the current seasonal patterns correlate to those of a delayed Santa-Claus rally! I am saying, however, that once the OEX begins trailing that blue envelope down, we're seeing an oversold condition building. It can get more oversold. I've studied other cases where prices not only followed the envelopes down (or up) for extended periods, but actually moved way outside the bands. The daily chart shows bearish oscillators and OEX breaking an ascending trendline from the August low, so the intermediate trend must be deemed down for now.

However, is the short-term risk shifting toward those in bearish positions? The daily chart also shows the OEX now in the middle of a congestion zone that trapped its movements throughout much of the summer, with support layered so thickly that it's difficult to name a level for the next ten points that isn't likely support. Bollinger says that, with respect to Bollinger bands, price is likely to follow the bands down (or up) unless they slant too steeply. Applying that principle to trading envelopes, is it possible that these now slant "too" steeply? With that support layered so thickly and with those perhaps-too-steeply-slanting envelope bands, it may be time for a Friday bounce, but that's a bit problematic, too. Where would that bounce stop? 506? 508? 509? 510? 511? Even 513.50 or 516? We tried an unofficial countertrend long trade yesterday and barely got out for breakeven.

Usually, I start the day with one or two possible scenarios for what I think might happen. Frankly, today I don't have one, although the most likely one appears to be a steadying at support, wherever that might be but perhaps at or not too far below the current OEX level, and then a climb. Perhaps direction is crystal clear to everyone else, but I'm going to have to watch early market direction to help build any kind of scenario. That may mean we'll miss a trade today, a trade some of you may have known was going to happen. That's okay. Jump in on your own, but you sure don't want me calling an official trade when I've admitted that I don't yet have a firm expectation for where the market will head on a particular day. We've had a solid week with the official Swing Trades, and I don't want to ruin that record by jumping in unprepared.

 
 
  Linda Piazza   9/26/200,  7:10:50 AM
Good morning. Both Jim and Jeff mentioned the earthquake that hit Japan just as our markets were closing yesterday. As one possible aftermath of that quake, the Nikkei opened down Friday morning, with some already naming the week's loss the worst since late 2002, but the Nikkei actually squeaked through to a nominally positive close. The Nikkei closed up 8.40 points or 0.08%, at 10,318.44. This is still more than 700 points lower than last Friday's close, and intraday differences have been even higher.

The day was full of economic news. An economic number released Friday showed August retail sales dropping 2% year-over-year. September's core Tokyo consumer prices fell 0.3% year-over-year. Newly retained banking regulator Heizo Takenaka spoke out, affirming his intention of forcing banks to clean up the bad loans that have troubled the banking industry. Banks rebounded. As the day progressed, exporters and drug stocks exchanged roles, with exporters leading declines early in the morning. Then exporters rebounded and drug stocks headed down. Of note is the potentially market-moving September Tankan survey of corporate sentiment to be released Wednesday. Some feel that trading will be shaky ahead of that number.

Other Asian bourses were mixed, although more traded down than up. The Taiwan Weighted lost 0.67% and South Korea's Kospi lost 2.26%. Singapore's Straits Times declined 0.14% and China's Shanghai Composite lost 0.40%. Hong Kong's Hang Seng closed flat, up a minimal 0.03%.

Most European bourses currently trade down. Listening to CNBC Europe for the last hour, I heard commentators mention that traders now awaited U.S. earnings reports next month and that investors were cautious about driving markets, even their own, higher ahead of those numbers. That thought was echoed in the print media. Articles also mentioned a vacuum of information right now ahead of those earnings. Some stock-specific information was released today, however. UBS upgraded German drug and chemical maker Bayer to a buy rating from its former neutral rating, and upgraded Deutsche Telekom to a neutral 2 rating from its former reduce rating. Both were gaining in early trading. J.P. Morgan cut Volkwagen's earnings forecast, with the carmaker declining in early trading. Also, the U.K. government approved a William Morrison Supermarkets plan to make an offer for Safeway, and blocked offers by Wal-Mart's Asda and two other chains.

As of this writing, the FTSE declines 46.20 points or 1.10%, to 4156.00. The CAC 40 has lost 36.12 points or 1.12%, to trade at 3194.42. The DAX declines 26.67 points or 0.80%, to 3299.60 points.

 
 
  Jeff Bailey   9/25/200,  12:47:54 AM
Pivot Matrix for tomorrow at this Link

 
 
  OI Technical Staff   9/25/200,  12:47:48 AM
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Disclaimer: Stocks discussed in the Market Monitor are for educational purposes only and any analysis is not meant to imply a recommendation for or against that stock. The analysts in this forum as on any other website are prohibited by the SEC from giving any specific advice to ANY individual trader. All information posted is for ALL readers and is not meant to be directed to any individual. Our analysts cannot answer any email questions regarding any specific stock. Please do not ask and please do not take offense if requests are denied.

Results posted in the Market Monitor are hypothetical and OIN does not claim that any reader achieved these exact results. Due to the lag time between research, writing, posting, uploading, reading and execution there will be differences between the actual signal given and the fill achieved by the reader. Fills may be better or worse but in many cases they will be different. The writers will make every effort to give advance notice of intended signals and indicate potential price targets. Your individual results may vary depending on your activity level and aggressiveness. This forum is intended as an education service only. Trading involves risk and should not be attempted by anyone not ready to accept this risk. By acting on any signal in this forum you agree and personally accept this risk.

 
 

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